Top German Court Clears Euro-Zone Bailout Fund

Final Legal Challenge to Permanent Bailout Mechanism Is Dismissed

BERLIN—Germany's highest court Tuesday dismissed the last legal challenge to the euro zone's permanent bailout mechanism, saying it didn't infringe on the German parliament's fiscal powers.

The Constitutional Court's ruling, which confirmed a preliminary decision in 2012, lifted an existential threat over the European Stability Mechanism, which relies on the support of Germany as its main purveyor of capital and the euro zone's...